AI-enabled HR SaaS unicorn draws backing from global investors for expansion
Bengaluru-based Darwinbox, a leading SaaS provider of human resource management tools, has closed a $140 million funding round co-led by global private equity giants Partners Group and KKR. The round was largely a secondary transaction (early investors selling shares) with a smaller primary component. Existing investor Gravity Holdings also participated. While no formal valuation was disclosed, Darwinbox’s cofounder Chaitanya Peddi confirmed it was an “up-round”, and sources peg the blended valuation around $950 million.
The fresh capital will be used to deepen Darwinbox’s R&D and fuel international expansion. According to The Economic Times, only a portion of the $140M was allocated as new primary funding; early shareholders offloaded most proceeds to new backers. Partners Group’s managing director, Cyrus Driver, noted that Darwinbox is “acting as a key disruptor” in the fast-growing global HR-tech market by investing heavily in product innovation, generative AI and global expansion. KKR India’s Akshay Tanna added that KKR plans to use its “global network and expertise” to “accelerate [Darwinbox’s] international expansion ambitions”.
Darwinbox’s management team says it will deploy the fresh funds to further enhance its cloud platform. Co-founder Peddi (quoted in ET) said the new funding will bolster the company’s AI and payroll offerings. “We are doubling down heavily on AI… this year is going to be significant from an innovation perspective,” Peddi noted. The funds will also support adding new modules and entering more markets. According to sources, Darwinbox already serves over 1,000 enterprises – from Starbucks and WeWork to Crisil and Nivea – across 130 countries, managing everything from hiring and onboarding to touchless attendance. The company recently reported a 58% increase in revenue year-on-year (around ₹392 crore in FY24), fueled by both new customers and international sales. It now generates more than 60% of new revenues from markets outside India, with the US, Middle East, UK and Asia-Pacific driving growth.
Industry analysts say the funding reflects broader trends in enterprise SaaS. Backed by Lightspeed Venture Partners and Peak XV (formerly Sequoia India), Darwinbox was already a unicorn in India, and this round underlines continued investor appetite for premium B2B startups. Lightspeed partner Dev Khare (an early backer) commented that Lightspeed “has partially reduced its stake” via this deal but remains a committed investor as Darwinbox scales. Gartner has also taken note: in 2025, Darwinbox became the youngest “Challenger” on Gartner’s Magic Quadrant for Cloud HCM suites – and the only Asian-origin player on the chart – highlighting its rapid global traction.
Strategically, the round cements Darwinbox’s push to challenge legacy HR systems with cloud-native, AI-powered solutions. Investor commentary emphasises its growth potential: Partners Group’s Driver observed that Darwinbox is shaking up a mature HR software space by blending automation and user-friendly design. For Darwinbox, the new capital not only rewards a decade of development (it was founded in 2015) but also provides a war chest for product enhancements and market entry. The founders say they aim to break past $100 million in annual recurring revenue by late 2025.
The funding also fits a larger trend of big rounds in India’s SaaS sector. Deals like Darwinbox’s series highlight that, despite a tougher VC climate overall, investors are still willing to back clear winners in enterprise software, especially those leveraging AI and addressing global markets. As Darwinbox co-founder Peddi put it, the company is “uniquely positioned” to serve every level of an organisation from the CEO down, which he believes gives it an edge in the booming HR tech market. With deep-pocketed partners on board, Darwinbox appears poised to step up its push overseas, further validating India’s startup ecosystem as a source of globally competitive B2B tech.
